Important Notice: Our web hosting provider recently started charging us for additional visits, which was unexpected. In response, we're seeking donations. Depending on the situation, we may explore different monetization options for our Community and Expert Contributors. It's crucial to provide more returns for their expertise and offer more Expert Validated Answers or AI Validated Answers. Learn more about our hosting issue here.

When are Supplemental Tax Rates used?

April 26, 2017rates supplemental tax Used

0

Posted

When are Supplemental Tax Rates used?

1 Answer

0

Posted

Supplemental Tax rates are used for any payments that are not qualified as regular pay( example: regular pay, sick pay, vacation pay etc.) Examples for Supplemental payments are: Stock Option Exercises, bonuses like Rapid Rewards, Pitney Bowes Incentive Payments, Commission, Prizes etc. Currently the supplemental rate for Federal is 25% under 1 million and 35% over 1 million. State supplemental varies by state (example: CT is 5% and NY is 7.